Arbitration appeal jurisdiction cannot extend beyond the reference; extra directions outside the award scope were set aside.

In an appeal under Section 37 of the Arbitration and Conciliation Act, the High Court could not issue directions on a matter outside the scope of the arbitration reference after setting aside the award. The court's power in such proceedings remained confined to the subject matter actually referred to arbitration, and it could not travel beyond that reference to impose a further direction for modification at the appellants' risk and cost. The setting aside of the award was sustained, but the additional direction was held to be beyond jurisdiction and was set aside.

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Issues: Whether the High Court, while exercising jurisdiction under Section 37 of the Arbitration and Conciliation Act, 1996, could issue a direction on a matter not covered by the reference to arbitration after setting aside the award.

Analysis: The direction issued by the High Court related to a subject that was not among the items referred to the arbitrator. In an appeal under Section 37 of the Arbitration and Conciliation Act, 1996, the High Court could not travel beyond the subject matter of the arbitration reference and issue directions on a dispute outside that reference. The setting aside of the award was sustained, but the further direction concerning modification at the risk and cost of the appellants was beyond jurisdiction.

Conclusion: The direction beyond the scope of the arbitration reference was set aside and the challenge succeeded to that extent.

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